SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
NASDAQ:SHLS - Nasdaq - US82489W1071 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SHLS. SHLS was compared to 93 industry peers in the Electrical Equipment industry. While SHLS has a great health rating, its profitability is only average at the moment. SHLS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SHLS had positive earnings in the past year.
In the past year SHLS had a positive cash flow from operations.
In the past 5 years SHLS has always been profitable.
Of the past 5 years SHLS 4 years had a positive operating cash flow.
1.2 Ratios
SHLS has a better Return On Assets (2.42%) than 77.42% of its industry peers.
SHLS has a Return On Equity of 3.41%. This is in the better half of the industry: SHLS outperforms 73.12% of its industry peers.
The Return On Invested Capital of SHLS (4.38%) is better than 72.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHLS is below the industry average of 9.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROIC | 4.38% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
With a decent Profit Margin value of 4.91%, SHLS is doing good in the industry, outperforming 78.49% of the companies in the same industry.
In the last couple of years the Profit Margin of SHLS has declined.
The Operating Margin of SHLS (11.29%) is better than 81.72% of its industry peers.
In the last couple of years the Operating Margin of SHLS has declined.
The Gross Margin of SHLS (34.39%) is better than 81.72% of its industry peers.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% |
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
2. Health
2.1 Basic Checks
SHLS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHLS has less shares outstanding
SHLS has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SHLS has been reduced compared to a year ago.
2.2 Solvency
SHLS has an Altman-Z score of 3.53. This indicates that SHLS is financially healthy and has little risk of bankruptcy at the moment.
SHLS has a better Altman-Z score (3.53) than 67.74% of its industry peers.
The Debt to FCF ratio of SHLS is 1.92, which is an excellent value as it means it would take SHLS, only 1.92 years of fcf income to pay off all of its debts.
SHLS's Debt to FCF ratio of 1.92 is amongst the best of the industry. SHLS outperforms 89.25% of its industry peers.
SHLS has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
SHLS has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.5
WACC8.79%
2.3 Liquidity
SHLS has a Current Ratio of 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.34, SHLS is in the better half of the industry, outperforming 65.59% of the companies in the same industry.
SHLS has a Quick Ratio of 1.58. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SHLS (1.58) is better than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -45.28% in the last year.
The Earnings Per Share has been decreasing by -0.95% on average over the past years.
The Revenue for SHLS has decreased by -18.09% in the past year. This is quite bad
The Revenue has been growing by 22.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.15% on average over the next years. This is quite good.
SHLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.25% yearly.
EPS Next Y12.28%
EPS Next 2Y20.47%
EPS Next 3Y19.2%
EPS Next 5Y13.15%
Revenue Next Year10.55%
Revenue Next 2Y11.06%
Revenue Next 3Y10.84%
Revenue Next 5Y9.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.83 indicates a rather expensive valuation of SHLS.
Compared to the rest of the industry, the Price/Earnings ratio of SHLS indicates a rather cheap valuation: SHLS is cheaper than 82.80% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.52. SHLS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.01, the valuation of SHLS can be described as correct.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaper than 89.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, SHLS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
76.34% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHLS indicates a rather cheap valuation: SHLS is cheaper than 93.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13 | ||
| EV/EBITDA | 18.79 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHLS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SHLS's earnings are expected to grow with 19.20% in the coming years.
PEG (NY)1.61
PEG (5Y)N/A
EPS Next 2Y20.47%
EPS Next 3Y19.2%
5. Dividend
5.1 Amount
SHLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.75
-0.1 (-1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners116.37%
Inst Owner Change-0.1%
Ins Owners0.76%
Ins Owner Change14.06%
Market Cap961.23M
Analysts77.69
Price Target6.5 (13.04%)
Short Float %13.09%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.11%
Min EPS beat(2)-23.86%
Max EPS beat(2)-18.35%
EPS beat(4)1
Avg EPS beat(4)-9.26%
Min EPS beat(4)-23.86%
Max EPS beat(4)25.69%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)8
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)3.62%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)4.45%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.56%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)1.15%
PT rev (3m)-0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.3%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-4.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.11%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 12.01 | ||
| P/S | 2.47 | ||
| P/FCF | 13 | ||
| P/OCF | 11.57 | ||
| P/B | 1.72 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 18.79 |
EPS(TTM)0.29
EY5.04%
EPS(NY)0.48
Fwd EY8.33%
FCF(TTM)0.44
FCFY7.7%
OCF(TTM)0.5
OCFY8.64%
SpS2.33
BVpS3.34
TBVpS2.69
PEG (NY)1.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROCE | 6.2% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 5.51% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% | ||
| FCFM | 19.03% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 70.63% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 146.25% | ||
| Profit Quality | 387.85% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 3.53 |
F-Score5
WACC8.79%
ROIC/WACC0.5
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
EPS Next Y12.28%
EPS Next 2Y20.47%
EPS Next 3Y19.2%
EPS Next 5Y13.15%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
Revenue Next Year10.55%
Revenue Next 2Y11.06%
Revenue Next 3Y10.84%
Revenue Next 5Y9.25%
EBIT growth 1Y-31.89%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year76.96%
EBIT Next 3Y32.67%
EBIT Next 5Y22.66%
FCF growth 1Y4.24%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y10.44%
OCF growth 3YN/A
OCF growth 5Y17.31%